“Taxes after all, are due that we pay for privileges of membership in an organised society”. Franklin D. Roosevelt was politically right when he said this, but the extent of an organised society is axiomatically relative. Pakistan policy making process is marred by several problems. Our social capital is either left unused or either never provide with conducive environment to nourish. To overcome social issues such as health, education and infrastructure, social finance is extremely necessary, which remains hidden from our policymakers. Ad-hocism have become the engraved trait of our policymakers, instead of contemplating upon complex problems, drafts and policy measures are inked down upon the naive method of “one size fits all”. In such quandary most of the policy solutions put forward by our creme de la creme is blindly replicated. A model best in practice is in-toto injected in government machineries, often ending in-vein, wasting men, material and funds. Why have we not been able to from a model of policy making apt to the socio-politico, economic and religious realities? Ranked 131 out of 141 countries in the Global Innovation index clearly depicts our failure to from an innovative model resistant to our realities.

Bad governance therefore in our pre-dominantly Webarian bureaucracy is rampant. Are the taxes therefore, paid to live in an organised society either high or unequal? “Collecting more taxes then is absolutely necessary is legalized robbery”. Calvin Collidge certainly emphasised on the responsibilities incumbent upon any government, once it collects taxes. Pakistan revenue generation is highly pivotal to three factors; agrarian export personal income tax, and corporate income tax. A progressive mode of taxation has been applied, which means that individuals or corporate sector, vis-a-vis their profits are taxed accordingly; the more one earns the more taxes he pays. For instance two individuals feed the same amount of balance in their mobile network to operate it, same amount of taxes are deducted by the government irrespective of rich and poor. One might argue that setting a taxation amount for each individual is beyond government control yet adding insult to injury is the fact that, taxes collected by a number of cellular networks were never deposited to the Federal Board of Revenue. The yard stick of progressive tax system remains murky in the agrarian fields too. Shied from undertaking land reforms, Pakistan’s tax policies have instead backed feudalism in numerous ways. In greed of more agrarian growth, taxation policy for agricultural land and yield corps remains highly lax. The surplus producing feudal maximize their profits, while the docile wage labourer remains whirled in taxation. The rich have found international dens to evade taxes, while the working class in Pakistan have been burdened with the expanding net of tax collection

The above mentioned factors rectify the abysmal situation of policy formulation and implementation in our country. Mired in such perplexed myopia, trickle-down effect of economics remains highly sclerotic in Pakistan. An effort to elevate the citizenry above the poverty line is extremely necessary. If $1 is set the standard for minimum per capita income 30% of Pakistan populace falls behind poverty line and if the standard is raised to $1.75 the situation aggravates to 50% being behind poverty line. Apart from income and consumption if factors such as nourishment, health facilities and education are taken into account, apart from the Panama rich families of Pakistan nearly the rest of Pakistan population might end up in poverty. In order to establish social equity into a relatively stable form, policies of taxation need to be revamped in Pakistan. Institutional frameworks are in dire need of an overhaul in the working paradigms of our institutions. Social financing is the need of the hour, which can certainly raise the otherwise nose-diving standard of living in our society. Being a welfare state, investing in social security is the utmost duty of any government but unfortunately the hue and cry regarding our free-falling social standards fall on deaf ears.